News: RIO Rio Tinto Says QTRLY Pilbara Iron Ore Shipments (100% Basis) 71.5 MT Versus 77.8 MT As...

April 20 (Reuters) - Rio Tinto Ltd (RIO) :

• QTRLY PILBARA IRON ORE SHIPMENTS (100% BASIS) 71.5 MT VERSUS 77.8 MT AS REPORTED LAST YEAR
• QTRLY PILBARA IRON ORE PRODUCTION (100% BASIS) 71.7 MT VERSUS 76.4 MT AS REPORTED LAST YEAR
• QTRLY MINED COPPER 125 KT VERSUS 120.5 KT AS REPORTED LAST YEAR
• QTRLY ALUMINIUM PRODUCTION 736 KT VERSUS 803 KT AS REPORTED LAST YEAR
• PRODUCTION IN Q1 WAS CHALLENGING AS EXPECTED
• RIO TINTO LTD SEES RISKS TO PRODUCTION IS EXACERBATED GLOBALLY BY TIGHT LABOUR MARKETS AND SUPPLY CHAIN DELAYS
• AS WE RAMP UP GUDAI-DARRI, OUR IRON ORE BUSINESS WILL HAVE GREATER PRODUCTION CAPACITY IN SECOND HALF.
• IN QUARTER, EXPERIENCED INCREASED COVID-19 CASES ON-SITE IN THE PILBARA FOLLOWING THE WESTERN AUSTRALIAN BORDER OPENING
• PILBARA OPERATIONS HAD A CHALLENGING FIRST QUARTER, AS EXPECTED
• CAPITAL EXPENDITURE FOR 2022 FOR OUR EXISTING OPERATIONS REMAINS UNCHANGED AT AROUND $8.0 BILLION
• FULL YEAR SHIPMENTS GUIDANCE REMAINS UNCHANGED FOR PILBARA
• CAPITAL EXPENDITURE FOR 2023 AND 2024 IS STILL EXPECTED TO BE BETWEEN $9.0 AND $10.0 BILLION
• PREPARATIONS CONTINUE FOR KITIMAT SMELTER TO PROGRESSIVELY RESTART FROM JUNE 2022 WITH FULL RAMP UP EXPECTED BY THE END OF THE YEAR
• AT GUDAI-DARRI, FIRST ORE VIA MAIN PLANT IS STILL FORECAST IN Q2 OF 2022
• IMPACT ON PROJECT COSTS OF ADDITIONAL RESTRICTIONS RELATED TO COVID-19 TO END OF MARCH IS ESTIMATED TO BE $195 MILLION AT OYU TOLGOI
• ARE IN THE PROCESS OF TERMINATING COMMERCIAL RELATIONSHIPS WITH RUSSIAN BUSINESSES
• SEES INCREASED PRODUCTION VOLUMES AND IMPROVED PRODUCT MIX IN H2 FOR PILBARA IRON ORE OPERATIONS
• MARKET EXPECTATIONS HAVE BEEN REVISED DOWNWARDS AMIDST SUSTAINED HIGH INFLATION, THE OUTBREAK OF THE RUSSIA-UKRAINE WAR
• MARKET EXPECTATIONS HAVE BEEN REVISED DOWNWARDS AMIDST RESURGENCE OF COVID-19 LOCKDOWNS IN CHINA
• EXPECT COMMODITY DEMAND TO BE UNDERPINNED BY GLOBAL ENERGY TRANSITION
• FURTHER DOWNSIDE RISKS TO MARKET EXPECTATIONS INCLUDE A PROLONGED WAR AND OTHER GEOPOLITICAL TENSIONS
• FURTHER DOWNSIDE RISKS TO MARKET EXPECTATIONS INCLUDE EXTENDED LABOUR & SUPPLY SHORTAGES
• FURTHER DOWNSIDE RISKS TO MARKET EXPECTATIONS INCLUDE MONETARY POLICY ADJUSTMENTS TO CURB INFLATION
• RISING GLOBAL PRODUCTION LATER IN 2022 SHOULD HELP TO OFFSET DISRUPTIONS IN COPPER MARKET
• MINE SUPPLY GROWTH SHOULD PICK UP DUE TO THE RAMP UP OF IDLED MINE CAPACITY AND NEW PROJECTS COMING ONLINE, ESPECIALLY IN AUSTRALIA